Icici Bank- Strategy Analysis

Topics: Bank, Banking, Financial services Pages: 40 (12511 words) Published: September 2, 2010
ICICI Bank : Strategy Analysis

Table of Contents
ICICI Bank : Strategy Analysis1
Brief History: Evolution of the Entity with respect to Time4
Establishing Synergy: Consolidation5
ICICI Bank in the Retail sector6
How it all began6
ICICI’s perspective of the retail market and the elements of strategy7
Corporate relationships7
Operational excellence8
ICICI and International Business9
International remittance key corridors for India9
Business Model10
ICICI Bank Approach10
Agri and Microfinance sector12
Rural, Micro-Banking & Agribusiness Group (RMAG)13
Mapping the Possibilities14
The Distribution Network15
ICICI and Corporate Division16
Leveraging Technology17
Focussed Group Approach17
Leveraging relationships18
E- Finance In ICICI Bank19
The Way Ahead19
Corporate Social Responsibility: ICICI Bank19
The Core Social Values of ICICI and The Strategic Approach to Achieve them20
Alignment of the Firm’s Objective with its CSR21
Tools for Firm Analysis21
Value Chain25
Generic Competitive Strategies26
BCG Matrix:27
Resource Based View(RBV)28
Porter’s 5 Force Model:32


Brief History: Evolution of the Entity with respect to Time

ICICI Bank traces back its origin to 1955 when, at the initiative of World Bank, the Government of India and representatives of Indian industry, The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated with the objective of providing long-term and medium-term project financing to Indian businesses (Exhibit 1). In 1955 ICICI acted as a primary source of foreign currency in the Indian Market. Funding from World Bank, GOI, and other multilateral sources not withstanding ICICI was also one of the first Indian companies to raise funds from international markets. In 1956 itself the company declared its first dividend of 3.5%. Spreading Wings: Developing a Diverse Product and Market Portfolio

In 1967 ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed and in 1969 the first two regional offices were set up in Calcutta and Madras. In 1972 the company set up merchant banking services and became one of the first two Indian entities to do so. In 1977 the formation of Housing Development Finance Corporation was sponsored by ICICI, and the company also managed its first equity public issue. In 1982 the bank raised European Currency Units, the first Indian borrower to do so, and also commenced leasing business. In 1986 ICICI received ADB Loans, again the first Indian institution to do so. In the same year, ICICI, along with UTI, set up Credit Rating Information Services of India Limited. In the same year ICICI promoted Shipping Credit and Investment Company of India Limited. The year 1987 saw ICICI making a public issue of Swiss Franc 75 million in Switzerland, marking the entry of an Indian entity in the Swiss capital market. In 1993 it Promoted TDICI, India's first venture capital company. ICICI Bank Established

It was in 1994 that ICICI Bank started as a wholly owned banking subsidiary of ICICI Limited. And in 1996 when K. V. Kamath took over ICICI Bank, ICICI, and its other group companies had largely complementary services, and though legally not a single entity, operated as a “virtual universal bank” in unison. Establishing Synergy: Consolidation

The process of achieving synergy across the different areas of operation began formally with the year 1998 when the name The Industrial Credit and Investment Corporation of India Ltd was also changed to ICICI Ltd and subsequently in 1999 a new logo symbolizing a common corporate identity for the ICICI Group was introduced. The Merger: It was in 2001the Boards of Directors of ICICI and ICICI Bank sanctioned the amalgamation of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and...
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